Factors Influence Consumers Buying Behaviour in India - Example

Explain how advertising has influenced consumers buying behaviour in India Contents Introduction 3 Factors influence consumers’ buying behaviour in India 3 Culture 4 Social factor 5 Demographic characteristics 6 Psychological factor 8 Conclusion 9 References 11 Introduction Buying behaviour is the process by which customer decides what to buy. Consumer buying behaviour involves preferences, attitude, decision and intension of the customers regarding the product and services which they want to purchase. There are many factors which influences the buying behaviour and shopping habit of the customer. Companies understand and identify different influential factors which affect the buying behaviour of customer. According to that the companies develop different strategies for promoting or launching its product and services. Advertisement campaign are developed and designed in such a way which creates a huge impact on customers and their buying behaviour. Different innovative types of advertisements are used by the company for influencing its customer. Different processes are involved in developing consumer behaviour. As first the consumer decides what product he wants to consumer and after that he selects the product which posses a high value to him. Money plays an important role while purchasing a product. Product selection of the consumer is also based on availability of money. Often companies advertise their products in a very attracting way which changes the perception of customers. Factors influence consumers’ buying behaviour in India Advertising is a very important marketing tool for companies in promoting its product. It helps the customers to become aware of different product and services. In India companies are concentrating more on its advertisements to increase its product sales and generate more revenues. They design the advertisements keeping in mind about different factors which influences purchasing decisions and buying behaviours of customers (Assael, 2005). There are four major factors which play a vital role for purchasing products. These factors are as follows: Culture Behaviour and needs of an individual is based on his culture. Every society and country has a definite culture. According to his culture a customer will purchase products. Various cultural factors are originated from different components of environment and culture. India has different types of culture. So, it is important for the companies to understand Indian culture to market its product. The country has a culture of celebrating many festivals and events throughout the year. People of India purchases different types of product during this festive time. So, the companies often make different customize products for particular festival and events (Batey, 2012). They design the advertisements according to its which provides the message of celebrating festival by purchasing the product. Many Indian people have the culture of purchasing different products which offer high discounts or priced low. They are very much conscious about price. These consumers normally things many time before buying any product or services. They take opinion from other about the product they want to purchase. World of mother is a very important cultural factor. Indian consumers focus on reviews of those people who belong to their same culture. Positive review from them influences the consumers to buy products and services. There are many people India who has the culture of maintaining their social status and buying products according to that. People belonging to high society follow the culture of purchasing high priced products. They maintain and show of their status by this culture (Baker and Hart, 2008). Religion has a huge contribution in establishing culture in India. It also influences buying behaviour of people. Many consumers of India purchase product according to their religious rules and regulations. Another vital cultural factor of this country is that before purchasing a product the consumer often takes advice from senior person who has a good amount of experience or knowledge about the product or service. India is experiencing different cultural changes for past few years. Globalization and liberalization process have influences changes in cultural trend of India. People a following a culture of modernization. They are purchasing different product and services which supports different modern processes and tends (Keller, 2006). Western countries have different types of culture. The people of these countries tend to spend more while buying some. They are very much conscious about brand. Customers of western countries like USA, UK etc have a culture on focusing more on quality of product and services. Therefore their buying behaviour is influenced by product quality. They are not fond of discounts and offers. Region does not play important role in purchasing any product. Social factor Society of India is characterized with a large number of joint families. In many parts of India the concept of joint family exists. Indian societies are formed on the basis of this idea. Therefore behaviour of an individual is influenced by his family members and the society. Cultural environment of the consumer’s family and society will play a major role in establishing his preferences, behaviour and values. Indian people prefer those products which enhances his different values. Societies of this country are divided into different classes. People of these classes have different consumption pattern and wants. Their buying behaviour is formed on the basis of these factors (Pride and Ferrell, 2014). Purchasing power of consumers differs according to their social classes. Customer of upper class prefers luxurious products or services. Whereas, customer of lower class prefer low priced product that will fulfil their requirements. Upper and middle class people purchases healthy and hygienic products. But the lower class people are more concerned about price. Their buying behaviour is influenced by product price. Society also influences the lifestyle of people. Consumers purchase products which matches with their way of living and lifestyle. Behaviours of different famous person of Indian society influences buying behaviour and purchasing decision of people. Customers often follow those famous person and their habits for buying different things (Wintzer, 2007). Different groups of the society also play a vital role in decision making process of customers. Consumer perception about different products and services are formed as per their social culture and family attitude regarding the product. Indian social structure shows the importance of various products and services. According to that importance people decide what product they should purchase for satisfying their need and desires. Societies of western countries are very liberal and organised. They have different social rules and regulations for protecting the environment. Therefore buying behaviour of customers in these countries is influenced by these social rules. As a result they purchase product which causes less environmental damages. Moreover society of western countries are characterised with nuclear family. So there product purchases and buying decisions are formed according to their small families. Demographic characteristics There are different demographic characteristics of India which contribute a lot in developing personal factor of an individual. These factors play a vital role in explaining customer preferences. Buying behaviour and decision are influences by characteristics of customers. According to their age and way of living they Indian people purchase products. The consumers give values to different product on the basis of their activities, values, habits, interest and hobbies (Cheverton, 2005). With the increase of their age their buying behaviour and product choices change. With the passage of time their understanding and ideas about different products influences their buying behaviours. According to the stage customers requires various types of products. Companies market appropriate products which satisfies the needs of people of different ages. Lifestyles of Indian people are regulated by values, opinion and activities of person. Lifestyle creates an impact on consumer behaviour. Indian consumers having good and healthy lifestyle prefer high quality of products. It influences their purchase decision (Carpenter and Hamilton, 2008). Personality trait of individual highlights their specific character. According to these characters behaviour of different customers varies. Some of the important personal traits of customers are openness, ambition, confidence, adaptability etc. all of these personal traits influencing consumers to select products as per their personality. Normally customers purchase products which match with their personality. Occupation of Indian customer is an important personal factor which a huge contribution in developing and influencing buying behaviour of customers. A person doing good operation purchases products which will justify or match with their occupation (Churchill, 2009). They will maintain their class while buying products and services. Low level workers will buy products just to meet their needs. These customers are not concerned about their business class for purchasing anything. Economic situation of Indian people control the buying behaviour of people. Customers having high income and savings will tend to purchase expensive product and services. On the other hand customers having low income will prefer to buy inexpensive services and products. Personality of various customers changes from time to time (Fill, 2006). Behaviour of Indian customers is highly dependent on their personality. Personality defines unique behaviour of an individual in different situations. A person having strong personality often influences buying behaviour of other people who have weak personality. Consumers of USA and UK purchase product as per their need. These countries have good economic situation. As a result people of these countries have a tendency to spend more on different types of goods and services. Most of the population of USA and UK are employed. So there buying behaviour is influenced by their earnings. Psychological factor Psychological mind setup of Indian customers helps them to decide and choose different products and services they want to purchase. Various issues are involved in determining psychological factor. Motivation is an important issue helps to develop buying behaviour of Indian consumer. Here motivation acts as a need which forces the consumer to purchase different products which satisfies his demand and want. It has a direct connection with purchasing decision of customer. It encourages the customers in buying different products and services. Perception of Indian customers varies with time and situation (Fill, Hughes and Francesco, 2013). According to a situation or time they form a perception about a product and services. Personal characteristics, experience and beliefs of customers helps to form their perception. Often Indian customer forms their perception by focusing on few details of product and services. In many cases customers have perceptions which are based on their experience and beliefs. Here customers interpret different situation as per their experience. Buying behaviour of these customers will entirely depend on their past experience. Perception of people depends on their capacity to retain selected information. According to that Indian consumers develop their perception about products. If they have a good perception about the product then they will purchase it. Indian Consumer buying behaviour is also influenced by learning process. Different actions of people provide them learning experiences. As a result consumer behaviour keeps on changing. India is a developing country. Many people of this country do not have proper education which affects their lifestyle and purchasing decisions. They often prefer those products where are less prices or have an attractive packaging. These customers are less bother about product quality. But their behaviours are getting changed by various learning experiences. By purchasing low quality product the customers are not getting benefits rather they are facing many troubles (Rani, 2014). For this reason consumer wants good quality of products. Attitude of customers to some extent influence their buying behaviour. It allows the customer to develop his behaviour regarding different products and services. If the customer have positive attitude about a product then he takes decision in purchasing that product. Customers of Western countries are not easily motivated or influenced by product appearance or its advertisements. Purchasing of product or services is done by them for maintaining their status. These customers have a psychological mindset to purchase high priced product. They believe that high priced product will be of good quality. Lavish lifestyle of these customers also influences their buying behaviour. Conclusion Buying behaviour of consumers changes with time and situation. As per the changing buying behaviour companies design their different promotional tools to market its products and services. Advertisement plays a major role branding and selling products. There are various factors which influences buying behaviour of customers. In India companies are presently focusing on innovative advertisements which describe products in details and help to attract many customers. Purchasing decision and buying behaviour of Indian customers are highly influenced by four important factors. Culture of Indian people contributes a lot in their purchasing process. As per their culture they select products and services which are acceptable in the society. Social classes play a vital role in selecting products. They purchases product which matches with their way of living. On the basis of different personal and psychological factors Indian customers selects products and services. References Assael, H., 2005. Consumer behaviour. New Delhi: Dreamtech Press. Baker, M., and Hart, S., 2008. The marketing book. Great Britain: Routledge. Batey, M., 2012. Brand meaning. USA: Psychology Press. Carpenter, G. S., and Hamilton, A., 2008. Handbook of marketing strategy. Stamford: Cengage. Cheverton, P., 2005. Key marketing skills: strategies, tools and techniques for marketing success. Great Britain: Kogan Page Publishers. Churchill, G., 2009. A paradigm for developing better measures of marketing constructs. Journal of Marketing Research. 25(4). pp. 98-116. Fill, C., 2006. Simply marketing communications. UK: FT Prentice Hall. Fill, C., Hughes, G., and Francesco, S., 2013. Advertising, strategy, creativity and media. USA: Pearson. Keller, K.L., 2006. Marketing management. UK: Pearson Prentice Hall. Pride, W., and Ferrell, O.C., 2014. Foundations of marketing. UK: Cengage Learning. Rani, P., 2014. Factors influencing consumer behaviour. [online] Available at < http://www.ijcrar.com/vol-2-9/Pinki%20Rani.pdf > [Assessed 24 February 2015]. Wintzer, E., 2007. Global competition and strategic management. Germany: GRIN Verlag. Read More